Gas Prices Drop, but Remain High

The national average price for a gallon of gasoline is about $3.40, according to the AAA Daily Fuel Gauge Report, and analysts expect prices to drop further.

The New York Times credits the drop to a sluggish global economy and a decrease in oil process. “Oil experts say the dropping prices of oil and gasoline reflect increasing supply and declining demand worldwide, a surge in the value of the dollar in recent weeks and a gradual easing of fears that the Arab Spring revolutions would produce an oil supply shock,” The New York Times explains.

Americans are also spending less on fuel. According to a MasterCard Spending Plus survey, American gasoline spending was down 2.5 percent in September compared with the same time last year. “The survey has shown declines of 2 to 3 percent in the four-week moving averages of gasoline consumption every week since the week ending Aug. 5, reflecting a decline in economic activity,” The New York Times reports.

Analysts also report that gas prices have dropped about a penny a day since September, but Time says gas is still more expensive than it was one year ago when a gallon of regular was about $2.71.

“Autumn is usually a time of significant price relief, a time when supplies are plentiful and post-summer driving is mostly confined to commutes, errands and short trips,” says the Los Angeles Times. “But even though the price of a gallon of regular gasoline in California fell for the fourth straight week, the declines are coming off the worst summer in three years for fuel prices. And prices fell a lot faster after summer 2008.”